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Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company’s sales declined by -14.89 % over the year, substantial increase in net sales/revenue by 4.49 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -21.76 %, Marginal decrease of -68.22% in other income during this quarter.
- Profit over the Year and quarter: Challenges in sustaining profitability for HEG Limited. Profit dropped by -83.44 % Year to Year, HEG Limited’s profitability dropped by -29.99 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -83.44 % Year to Year. EPS decreased by -30.01 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 671.43 Cr | Rs. 546.902 Cr | Rs. 571.461 Cr | + 4.49 % | -14.89 % |
| Expenses | Rs. 520.26 Cr | Rs. 505.78 Cr | Rs. 532.77 Cr | + 5.34 % | + 2.4 % |
| Operating Profit | Rs. 151.17 Cr | Rs. 41.12 Cr | Rs. 38.69 Cr | -5.91 % | -74.41 % |
| OPM % | 22.51 % | 7.52 % | 6.77 % | -0.75 % | -15.74 % |
| Other Income | Rs. 26.117 Cr | Rs. 64.311 Cr | Rs. 20.435 Cr | -68.22 % | -21.76 % |
| Interest | Rs. 8.85 Cr | Rs. 8.63 Cr | Rs. 8.47 Cr | -1.85 % | -4.29 % |
| Depreciation | Rs. 38.34 Cr | Rs. 50.44 Cr | Rs. 47.5 Cr | -5.83 % | + 23.89 % |
| Profit before tax | Rs. 130.1 Cr | Rs. 46.36 Cr | Rs. 3.16 Cr | -93.18 % | -97.57 % |
| Tax % | 25.21 % | 28.03 % | 21.79 % | -6.24 % | -3.42 % |
| Net Profit | Rs. 139.12 Cr | Rs. 32.9 Cr | Rs. 23.04 Cr | -29.97 % | -83.44 % |
| EPS in Rs | Rs. 36.05 | Rs. 8.53 | Rs. 5.97 | -30.01 % | -83.44 % |
Today, we’re looking at HEG Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -14.89 %. However, it did see a marginal increase of 4.49 % from the previous quarter. Expenses ticked up slightly by 5.34 % quarter-on-quarter, aligning with the annual rise of 2.4 %. Operating profit, while down -74.41 % compared to last year, faced a quarter-on-quarter dip of -5.91 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -15.74 %, but a shrinkage of -0.75 % sequentially. Other income fell by -68.22 % compared to the last quarter, despite an annual decline of -21.76 %. Interest expenses dropped significantly by -1.85 % from the previous quarter, yet the year-over-year decrease remains at a moderate -4.29 %. Depreciation costs fell by -5.83 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 23.89 %. Profit before tax declined annually by -97.57 % but saw a reduction from the preceding quarter by -93.18 %.
Tax expenses as a percentage of profits decreased slightly by -3.42 % compared to last year, with a more notable quarter-on-quarter decrease of -6.24 %. Net profit fell by -83.44 % year-on-year but witnessed a -29.97 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -83.44 % but a quarterly fall of -30.01 %. In summary, HEG Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 671.43 Cr | Rs. 546.902 Cr | Rs. 571.461 Cr | + 4.49 % | -14.89 % |
| Expenses | Rs. 520.26 Cr | Rs. 505.78 Cr | Rs. 532.77 Cr | + 5.34 % | + 2.4 % |
| Operating Profit | Rs. 151.17 Cr | Rs. 41.12 Cr | Rs. 38.69 Cr | -5.91 % | -74.41 % |
| Net Profit | Rs. 139.12 Cr | Rs. 32.9 Cr | Rs. 23.04 Cr | -29.97 % | -83.44 % |
| EPS in Rs | Rs. 36.05 | Rs. 8.53 | Rs. 5.97 | -30.01 % | -83.44 % |
In reviewing HEG Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -14.89 % year-on-year, however, there was a minor increase of 4.49 % from the previous quarter. Expenses rose by 2.4 % compared to the previous year, with a 5.34 % increase quarter-on-quarter. Operating Profit dropped by -74.41 % annually, and saw a -5.91 % decrease from the last quarter.
Net Profit showed yearly decrease of -83.44 %, and experienced a -29.97 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -83.44 % annually, however dipped by -30.01 % compared to the last quarter. In essence, while HEG Limited faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
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